Intel (INTC)

bout I should have a twitter account as I was buying Intel during the conference call.

The plan here is to do a "married put," buy some put options about 6-months out for downside protection at a cost of aroudn 1.50 a share.  This prevents getting called out, is better than a covered call since I am bullish on the price move over the short-term and locks me in to very little risk over the life of the trade.  Also, as the market trends I will sell calls on up days and buy them back on low days offsetting the cost of the put and have a risk free trade.  If I sell the equity I still have value in the put options and if INTC were to pullback significantly I would make money on the puts as well...

Looks like the base in the after hours is around 21.65, it took a quick drop to 21.39 but quickly recovered and is now consolidating here.  The historical chart shows a good run-up after earnings followed by some quick pull-backs...

Happy trading...

LCC on the move!

I would place a TRAILING STOP if you are long this one…

 

Looks like naked short covering to me!  Over 25,000 open interest on the 5$ Calls that expire Friday…  Earnings out in a couple of weeks…

 

Better safe than sorry.  This is a great stock to sell covered calls on though, the 5$ have touched .50 twice in the last couple of weeks after pulling back to .15 and .20

 

Happy Trading!

 

ARAY Put follow-up

Over the last two days Accuray has surged almost 20% driving the Mar 5 Puts down to .10 Bid and .25 ask. This would be good for at least a 50% profit if you picked up when recommended previously. I cannot find any news supporting the increase in price and volume but that doesn't mean there aren't any share exchanges or other instruments coming due or available to institutional investors or other firms.


I'm not convinced enough yet that this is pumped from such exchange so I may be looking at buying some puts for a quick pull back and then turn around and sell the 5 strike again. If we get that lucky.

Let's keep watching this one...

Happy Trading...

China Cord Blood IPO indication of CBAI.OB

China Cord Blood Corporation exercised its overallotment on 1 Jan. The IPO closed 24 Nov at $6.05.

Wouldn't it be nice if Cord Blood America closes at $6.05 someday?!

Happy Trading...

LCC Calls now earning 60% + ARAY

LCC is proving to be a good techincal covered call. I am short the Jan 5 calls and after the impact of the failed attack on Christmas Eve looks like LCC has a new base in the 4.80s. This may prove to be a well executed trade if the stock stays below 5 over the next two weeks. I was planning on using the cover to sell the stock but with this new base it may be worth hanging on to and trading out of the money calls on... 2 ways to do this; close out the option for a 60% profit and sell 6 or 7.50 calls a couple of months out or hang on to see if the options expire worthless and keep all the premium then buy the stock back on a dip for an OTM covered call.

Also looking at ARAY since it has pulled back to the 5.60 range. I recommend selling Mar 5 puts last month then the stock jumped and the premiums fell. Was looking for a .50 premium. I like ARAY for selling puts since the stock has maintained an average $5 base since I have been watching it. Even if it gets put to you just wait a week and sell it over 5...

Happy Trading...